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PRESIDENT'S LETTER
Dear Shareholder:
As your Fund ended its semi-annual reporting period on November 30, 1993,
the Fund's net asset value was $15.52 per share. Dividends of approximately $.44
per share have been paid during this period, representing an annualized
distribution rate per share of 5.51% based on the November 30, 1993 closing
price. In addition, we are pleased to report that all dividends paid from net
investment income during this period were exempt from Federal and State of
California income taxes, although certain shareholders may be subject to the
Federal Alternative Minimum Tax on some portfolio income.*
As the reporting period began, the U.S. economy continued to exhibit signs
of weakness. In addition, the rate of inflation remained quite low which also
encouraged a continuation of the strong market in fixed-income securities. In
this environment, the municipal market reached price highs not seen in many
years, as interest rates declined. However, as the reporting period ended, signs
of economic strength began to emerge and, with that, bond prices weakened
somewhat as concern arose over potentially rising inflation. Your Fund was well
positioned to perform in the markets which developed during the reporting
period.
Subsequently, declines in oil prices gave renewed confidence to the
low-inflation scenarios which have dominated market thinking for the past
several years, and they contributed to a renewal of the bond rally in mid-
December. This rally did not achieve the high price levels experienced earlier
in the fourth quarter, but nonetheless was substantial. Many economists believe
that the U.S. will return to anemic economic performance in the first quarter of
1994, which, it is believed, may relieve inflationary pressures and further
bolster bond prices.
However, recent statements by officials of the Federal Reserve Board have
suggested that the Fed will begin to `snug up` rates if economic growth
continues above 3% in the first quarter of 1994. It is widely understood that
Federal Reserve officials are intent on not giving up gains made against
inflation over the past several years. In the long run, this should bode well
for long-term bonds even if rates rise somewhat in the first quarter due to Fed
actions. In addition, the municipal bond market is in a strong position due to
the expectation that the volume of newly-issued bonds in 1994 will be
substantially reduced just as tax rates are rising.
We have previously reported our concerns about the California economy. As we
look to 1994, this may continue to be a source of discomfort. It is our belief
that the California economy will continue to display slow to negative economic
growth well into 1994. The State continues to struggle as it adjusts to defense
cutbacks and the lingering deflation in its real estate markets. California has
lost 600,000 jobs since mid-1990, and it may be mid-1994 before the declines in
employment end. The major positive development for the California economy is the
improvement in the overall U.S. economy and the economies of many Pacific rim
nations. It is hoped that the momentum of this growth among California's trading
partners will speed the State's recovery.
We have included a current Statement of Investments and recent financial
statements for your review. We greatly appreciate your investment in the Fund
and look forward to serving your investment needs in the future.
Very truly yours,
Richard J. Moynihan
President
December 22, 1993
New York, N.Y.
*Capital gains, if any, are generally subject to Federal, State and local taxes.
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DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS NOVEMBER 30, 1993 (UNAUDITED)
- --------------------------------------------------------------------------------- PRINCIPAL
MUNICIPAL BONDS--97.3% AMOUNT VALUE
-------------- --------------
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- ---------------------------------------------------------------------------------
CALIFORNIA--97.0%
Alameda County, COP:
7.25%, 12/1/2014 (Insured; BIGI)............................................... $ 5,980,000 $ 7,078,705
7.25%, 12/1/2015 (Insured; BIGI)............................................... 4,045,000 4,788,188
Zero Coupon, 6/15/2018 (Insured; MBIA)......................................... 1,200,000 275,880
Anaheim, COP (Anaheim Memorial Hospital Association)
7.25%, 5/15/2020 (Insured; AMBAC).............................................. 6,000,000 7,027,800
Anaheim Electric System, COP 6.75%, 10/1/2022 (Insured; AMBAC)................... 1,500,000 1,729,275
Anaheim Public Finance Authority, Tax Allocation Revenue
10.07%, 12/28/2018 (Insured; MBIA)(a).......................................... 3,000,000 3,607,500
Atwater Community Facilities District, Special Tax 7.75%, 8/1/2015............... 16,040,000 14,275,600
Bellflower, COP, Refunding
(Bellflower Civic Center) 7.20%, 10/1/2019 (Insured; MBIA)..................... 1,475,000 1,696,737
Big Independent Cities Excess Pool Joint Power Authority, Insurance Program
Revenue
8.25%, 3/1/2009................................................................ 5,750,000 6,079,820
Brea and Olinda Unified School District, COP 7.70%, 8/1/2018..................... 2,950,000 3,192,933
Brea Public Finance Authority, Revenue, Tax Allocation (Redevelopment Project):
6.75%, 8/1/2022 (Insured; MBIA)................................................ 4,625,000 5,355,750
6.75%, 8/1/2022 (Insured; MBIA)................................................ 1,775,000 1,961,428
California:
6.20%, 9/1/2006................................................................ 8,500,000 9,346,940
5.75%, 10/1/2010............................................................... 1,830,000 1,902,139
5.50%, 4/1/2013................................................................ 10,000,000 9,975,500
8.616%, 4/1/2023(a,b).......................................................... 10,000,000 10,237,500
California Alternative Energy Source Financing Authority, Cogeneration Revenue
(SRI International Project) 9.75%, 12/1/2005................................... 3,250,000 1,625,000
California Department of Transportation, COP (East Bay State Building)
6.50%, 3/1/2016................................................................ 15,975,000 16,799,949
California Department of Veteran Affairs, Home Purchase Revenue 8.30%,
8/1/2019....................................................................... 1,000,000 1,071,150
California Department of Water Resources, Revenue
(Central Valley Project):
7.70%, 12/1/2024............................................................. 2,000,000 2,304,840
Water System:
6.125%, Series J-2, 12/1/2013.............................................. 3,000,000 3,125,190
6.60%, 12/1/2019........................................................... 3,000,000 3,406,320
6%, 12/1/2021.............................................................. 10,595,000 10,842,817
6.90%, 12/1/2025........................................................... 5,070,000 5,841,806
California Educational Facilities Authority, Revenue:
(National University) 7.15%, 5/1/2021.......................................... 7,500,000 8,439,675
(University of San Francisco) 6.40%, 10/1/2017................................. 6,300,000 6,615,819
California Health Facilities Authority, HR
(Saint Joseph's Health System) 9.875%, 7/1/2014................................ 400,000 445,676
</TABLE>
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DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1993 (UNAUDITED)
- --------------------------------------------------------------------------------- PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
-------------- --------------
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CALIFORNIA (CONTINUED)
<S> <C> <C>
California Health Facilities Financing Authority, Revenue:
(Adventist Health System-West):
6.40%, 3/1/2002 (Insured; MBIA).............................................. $ 1,955,000 $ 2,172,924
6.50%, 3/1/2003 (Insured; MBIA).............................................. 2,140,000 2,379,573
(Catholic Health Facilities) 7%, 7/1/2020 (Insured; AMBAC)..................... 25,000,000 28,154,250
(Downey Community Hospital):
5.625%, 5/15/2008............................................................ 2,500,000 2,487,775
5.75%, 5/15/2015............................................................. 2,750,000 2,681,333
(Episcopal Homes Foundation) 7.75%, 7/1/2018................................... 4,270,000 4,593,794
(Health Facilities-Sisters of Providence) 7.50%, 10/1/2010..................... 4,545,000 5,189,345
(Kaiser Permanente):
7%, 10/1/2018................................................................ 10,520,000 11,696,346
6.50%, 12/1/2020............................................................. 25,900,000 27,757,289
(Mills-Peninsula Hospital) 7.50%, 1/15/2000.................................... 800,000 879,608
Refunding (Valley Memorial Hospital) 6%, 5/1/2017.............................. 8,780,000 8,792,555
(Robert F. Kennedy Medical Center) 7.75%, 3/1/2014............................. 1,500,000 1,672,275
(Saint Joseph's Health System) 6.75%, 7/1/2021................................. 8,500,000 9,820,645
(San Diego Children's Hospital) 6.50%, 7/1/2020 (Insured; MBIA)................ 7,500,000 8,057,175
(Stanford University):
6.50%, 11/1/2020............................................................. 8,975,000 10,228,807
6.50%, 11/1/2020............................................................. 1,025,000 1,091,963
(Unihealth America):
7.625%, 10/1/2015 (Insured; AMBAC)........................................... 9,690,000 11,300,381
7.625%, 10/1/2015 (Insured; AMBAC)........................................... 55,000 63,096
California Housing Finance Agency, Home Mortgage Revenue:
8.20%, 8/1/2017................................................................ 115,000 125,893
8.30%, 8/1/2019................................................................ 390,000 406,899
California Pollution Control Financing Authority:
PCR:
(Pacific Gas & Electric Co.):
8.75%, 1/1/2007............................................................ 8,000,000 9,347,280
6.35%, 6/1/2009............................................................ 10,000,000 10,609,800
(Southern California Edison Co.):
6.40% 12/1/2024............................................................ 28,000,000 29,750,280
6.40% 12/1/2024............................................................ 10,000,000 10,744,000
RRR (Waste Management Inc.) 7.15%, 2/1/2011.................................... 7,000,000 7,831,600
SWDR (North County Recycling Center) 6.75%, 7/1/2017
(LOC; Union Bank of Switzerland) (c)......................................... 10,000,000 10,920,700
California Public Works Board, LR:
(California State University Library Project) 6.25%, 9/1/2016.................. 11,900,000 12,328,162
(Department of Corrections) 6.50%, 9/1/2019.................................... 2,270,000 2,596,313
(Regents of the University of California) 7%, 9/1/2010......................... 2,500,000 2,908,375
(Various University of California Projects):
Refunding 5.50%, 6/1/2010.................................................... 6,950,000 6,857,356
5.25%, 12/1/2013............................................................. 7,500,000 7,221,375
5.50%, 12/1/2018............................................................. 4,750,000 4,575,200
</TABLE>
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<CAPTION>
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DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1993 (UNAUDITED)
- --------------------------------------------------------------------------------- PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
-------------- --------------
- ---------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
<S> <C> <C>
California Public Works Board, LR (continued):
(Various University of California Projects) (continued):
Refunding 5.50%, 6/1/2021.................................................... $ 21,700,000 $ 20,667,514
6.60%, 12/1/2022............................................................. 13,000,000 15,113,410
California Statewide Community Development Authority:
(Pacific Homes) 6%, 4/1/2017................................................... 7,500,000 7,528,650
Revenue:
(Oakland Convention Center Project) 5.50%, 10/1/2014 (Insured; AMBAC)........ 12,000,000 11,852,400
(Insured Health Facilities, Unihealth) 5.50%, 10/1/2014 (Insured; AMBAC)..... 8,750,000 8,642,375
Refunding (Triad Health Care):
6.25%, 8/1/2006............................................................ 6,000,000 6,108,120
6.50%, 8/1/2022............................................................ 9,000,000 9,356,130
Calleguas Municipal Water District, COP
6.25%, 7/1/2017 (Insured; AMBAC)............................................... 15,000,000 16,884,450
Carlsbad Housing and Redevelopment Agency, Tax Allocation
(Village Redevelopment Project) 7.80%, 4/1/2011 (Insured; AMBAC)............... 2,000,000 2,280,840
Castaic Lake Water Agency, COP
(Water System Improvement Project) 7.125%, 8/1/2016 (Insured; MBIA)............ 5,000,000 5,719,850
Central Basin Municipal Water District, COP
(Century Reclamation Program):
6.875%, 2/1/2011 (Insured; FGIC)............................................. 3,400,000 3,913,978
6.875%, 2/1/2016 (Insured; FGIC)............................................. 2,935,000 3,378,684
Central California Joint Powers Health Financing Authority, COP, Refunding
(Community Hospitals of Central California Project):
5.50%, 2/1/2015.............................................................. 7,260,000 6,910,794
5%, 2/1/2023................................................................. 8,520,000 7,394,252
Central Coast Water Authority, Revenue
(State Water Project Regional Facilities) 6.60%, 10/1/2022 (Insured; AMBAC).... 4,000,000 4,386,320
Chico Public Financing Authority, Revenue
(Southeast Chico Redevelopment Project) 6.625%, 4/1/2021 (Insured; FGIC)....... 10,000,000 10,830,900
Chula Vista, IDR (San Diego Gas and Electric) 6.40%, 12/1/2027................... 10,600,000 11,262,606
Compton Community Redevelopment Agency, Refunding
(Walnut Industrial Park Project):
7.50%, 8/1/2013 (Insured; AMBAC)............................................. 3,000,000 3,466,110
8.10%, 8/1/2013.............................................................. 14,000,000 15,736,840
Contra Costa County, COP (Merrithew Memorial Hospital) 6.60%, 11/1/2012.......... 10,000,000 10,681,500
Corona Community Facilities District, Special Tax:
8.35%, 9/1/2020................................................................ 5,400,000 5,211,000
Refunding:
7.60%, 9/1/2013.............................................................. 5,755,000 5,902,270
7.60%, 9/1/2017.............................................................. 3,000,000 2,939,490
7.70%, 9/1/2019.............................................................. 2,000,000 2,050,020
</TABLE>
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<TABLE>
<CAPTION>
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DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1993 (UNAUDITED)
- --------------------------------------------------------------------------------- PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
-------------- --------------
- ---------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
<S> <C> <C>
Costa Mesa City Hall and Public Safety Facilities Inc., LR
(Victoria Street) 7.60%, 10/1/2018............................................. $ 4,600,000 $ 5,188,386
Dos Palos Public Financing Authority, Local Agency Revenue 7.90%, 10/1/2020...... 9,300,000 9,996,198
East Bay Municipal Utilities District, Revenue:
Wastewater Treatment System:
7.20%, 6/1/2020 (Insured; AMBAC)............................................. 3,325,000 3,890,416
8.17%, 6/1/2020(a)........................................................... 15,100,000 14,722,500
Water System:
Refunding 6%, 6/1/2020....................................................... 10,000,000 10,258,300
6.375%, 6/1/2021 (Insured; AMBAC)............................................ 22,000,000 25,054,480
Eastern Municipal Water District, Water and Sewer Revenue, COP
6.50%, 7/1/2020 (Insured; FGIC)................................................ 10,000,000 11,415,400
Fairfield, COP, Home Mortgage Revenue 11%, 7/1/2017.............................. 110,000 116,247
Folsom, Special Tax (Community Facilities District Number 3) 7.80%, 12/1/2015.... 1,900,000 2,042,386
Folsom Public Financing Authority, Local Agency Revenue:
7.90%, 10/1/2019............................................................... 3,780,000 4,319,557
7.90%, 10/1/2019............................................................... 19,595,000 20,300,028
Fontana, Special Tax:
(Community Facilities District Number 3):
8.60%, 10/1/2010............................................................. 7,500,000 8,030,850
8.70%, 10/1/2015............................................................. 11,500,000 12,330,645
(Community Facilities District Number 90-3):
8.375%, 4/1/2011............................................................. 10,000,000 10,724,800
8.50%, 4/1/2021.............................................................. 8,000,000 8,568,480
Galt Community Facilities District, Special Tax 7.70%, 9/1/2019.................. 10,950,000 11,563,638
Glendale Redevelopment Agency, Tax Allocation Revenue
(Central Glendale Redevelopment Project):
7%, 12/1/2011 (Insured; AMBAC)............................................... 4,600,000 5,263,872
7.10%, 12/1/2020 (Insured; AMBAC)............................................ 4,700,000 5,399,360
Hesperia Water District, COP, Refunding
(Water Facilities Improvement Project) 7.15%, 6/1/2026 (Insured; FGIC)......... 4,500,000 5,201,505
Industry Urban Development Agency, Refunding (Civic Recreational Project):
7.375%, 5/1/2015............................................................... 765,000 863,318
7.375%, 5/1/2015............................................................... 235,000 257,193
Inglewood, HR (Daniel Freeman Hospital, Inc.) 6.75%, 5/1/2013.................... 6,300,000 6,916,203
Irvine Ranch Water District Joint Powers Agency, Local Pool Revenue
8.25%, 8/15/2023............................................................... 950,000 1,061,692
La Verne Community Facilities District, Special Tax
(Koll Business Center) 7.875%, 3/1/2014........................................ 3,625,000 3,830,791
Lake Elsinore Public Financing Authority, Revenue:
Local Agency:
7.50%, 10/1/2010............................................................. 2,600,000 2,700,438
</TRevenue:
6.75%, 7/1/2018.............................................................. 4,750,000 5,488,435
5.50%, 7/1/2019.............................................................. 12,700,000 12,459,970
M-S-R Public Power Agency, Revenue (San Juan Project):
6.625%, 7/1/2013 (Insured; BIGI)............................................... 10,000,000 10,695,800
6.50%, 7/1/2017 (Insured; MBIA)................................................ 3,200,000 3,467,552
6.875%, 7/1/2019 (Insured; AMBAC).............................................. 5,200,000 5,612,776
Modesto, COP (Modesto Community Center Project) 8%, 11/1/2006.................... 2,000,000 2,329,620
Modesto Irrigation District, Electric Revenue
9.625%, 1/1/2011............................................................... 8,780,000 12,633,630
Moreno Valley Unified School District,
Community Facilities District, Special Tax:
7.65%, 8/15/2009............................................................. 5,000,000 5,203,700
7.70%, 8/15/2014............................................................. 9,000,000 9,376,920
Moulton Niguel Water District (Improvement District Number 6)
7.25%, 4/1/2016 (Insured; AMBAC)............................................... 5,000,000 5,874,250
Mount Diablo Hospital District, Revenue
6.125%, 12/1/2020 (Insured; AMBAC)............................................. 5,000,000 5,595,050
</TABLE>
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<TABLE>
<CAPTION>
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DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1993 (UNAUDITED)
- --------------------------------------------------------------------------------- PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
-------------- --------------
- ---------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
<S> <C> <C>
Mount Diablo Unified School District, Community Facilities District Special Tax
7.05%, 8/1/2020 (Insured; FGIC)................................................ $ 3,500,000 $ 3,976,210
Northern California, Transmission Revenue
(California-Oregon Transmission Project):
6.50%, 5/1/2016 (Insured; MBIA).............................................. 2,250,000 2,450,677
Refunding 5.25%, 5/1/2020 (Insured; MBIA).................................... 5,000,000 4,773,100
6%, 5/1/2024 (Insured; MBIA)................................................. 5,000,000 5,183,450
Northern California Power Agency, Power Revenue
(Hydroelectric Project):
7%, 1/1/2016 (Insured; AMBAC)................................................ 670,000 837,487
7.15%, 7/1/2024.............................................................. 9,925,000 10,912,041
Refunding:
7%, 7/1/2016 (Insured; AMBAC).............................................. 3,830,000 4,151,605
7.50%, 7/1/2023 (Insured; AMBAC)........................................... 375,000 504,004
8%, 7/1/2024............................................................... 1,500,000 1,740,390
(Geothermal Project) 5.50%, 7/1/2005....................................... 5,000,000 5,162,000
Oceanside Community Development Commission, LR
(Oceanside Civic Center Project) 8%, 8/1/2019.................................. 1,000,000 1,129,140
Orange County Local Transportation Authority, Sales Tax Revenue 5.70%,
2/15/2003...................................................................... 7,500,000 7,962,525
Palmdale Improvement Bond Act 1915, 8.125%, 9/2/2016............................. 2,220,000 1,776,000
Pasadena, COP, Refunding (Capital Project) 5.75%, 1/1/2013....................... 1,500,000 1,491,315
Port of Oakland, Revenue:
Port:
6.50%, 11/1/2016 (Insured; MBIA)............................................. 8,500,000 9,204,820
6.40%, 11/1/2022 (Insured; MBIA)............................................. 10,000,000 10,705,400
Special Facilities
(Mitsui O.S.K. Lines Ltd.) 6.80%, 1/1/2019 (LOC; Industrial Bank of
Japan)(c)................................................................... 2,000,000 2,159,700
Poway, COP 7%, 7/1/2020 (Insured; FSA)........................................... 4,700,000 5,375,672
Poway Redevelopment Agency, Tax Allocation Refunding
(Parguay Redevelopment Project) 5.50%, 12/15/2023 (Insured; FGIC).............. 15,000,000 14,761,200
Rancho Cucamonga Redevelopment Agency, Tax Allocation
(Rancho Cucamonga Redevelopment Project):
7.125%, 9/1/2019 (Insured; MBIA)............................................. 5,000,000 5,678,250
6.75%, 9/1/2020 (Insured; MBIA).............................................. 3,500,000 3,823,925
Redding, Electric System Revenue, COP
9.967%, 7/1/2022 (Insured; MBIA)(a)............................................ 3,650,000 4,548,813
Redlands, COP, 7%, 12/1/2022 (Insured; MBIA)..................................... 2,600,000 2,974,088
Rialto, COP (Wastewater Treatment Facilities Project) 7.30%, 11/1/2008........... 5,260,000 6,048,106
Riverside County:
COP, Refunding (Public Financing Project):
7.75%, Type 1, 12/1/2003..................................................... 1,500,000 1,690,005
7.75%, Type 2, 12/1/2003..................................................... 1,500,000 1,690,005
</TABLE>
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<CAPTION>
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DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1993 (UNAUDITED)
- --------------------------------------------------------------------------------- PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
-------------- --------------
- ---------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
<S> <C> <C>
Riverside County Asset Leasing Corp., Leasehold Revenue
(Riverside County Hospital Project):
7.20%, 6/1/2010 (Insured; BIGI).............................................. $ 4,450,000 $ 5,153,945
6.25%, 6/1/2019.............................................................. 7,500,000 7,576,200
Riverside County Community Facilities District, Special Tax:
7.80%, 9/1/2015................................................................ 7,000,000 6,510,000
8.25%, 9/1/2016................................................................ 4,730,000 4,939,208
8.60%, 9/1/2020t 2074) 8.15%, 8/1/2013....................... 5,240,000 6,251,006
</TABLE>
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<TABLE>
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DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1993 (UNAUDITED)
- --------------------------------------------------------------------------------- PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
-------------- --------------
- ---------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
<S> <C> <C>
Tehachapi Community Facilities District, Special Tax 7.40%, 10/1/2014 (d)........ $ 6,345,000 $ 3,172,500
University of California:
COP (UCLA Central Chiller/Cogeneration):
6.25%, 11/1/2009............................................................. 3,000,000 3,347,670
7%, 11/1/2018................................................................ 8,650,000 9,978,467
Housing System Revenue-Group A:
7.60%, 11/1/2018 (Insured; MBIA)............................................. 5,610,000 6,334,139
Refunding:
7.875%, 11/1/2013.......................................................... 1,500,000 1,703,160
7.80%, 11/1/2015........................................................... 4,700,000 5,336,756
7.80%, 11/1/2018........................................................... 6,060,000 6,875,494
Revenue:
Housing System 5.50%, 11/1/2011 (Insured; MBIA).......................... 5,000,000 5,008,350
(Multiple Purpose Projects) 5.125%, 9/1/2013 (Insured; AMBAC)............ 4,845,000 4,644,223
Vallejo, COP (Marine World Foundation) 8.10%, 2/1/2021........................... 13,000,000 13,227,500
Wasco Public Finance Authority, Local Agency Revenue:
7.75%, 10/1/2019............................................................... 19,050,000 19,256,693
8%, 10/1/2019.................................................................. 8,500,000 9,061,000
West Basin Municipal Water District, COP
6.85%, 8/1/2016 (Insured; AMBAC)............................................... 6,000,000 6,934,680
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U.S. RELATED--.3%
Puerto Rico Telephone Authority, Revenue, Refunding 5.40%, 1/1/2008.............. 5,000,000 5,020,400
--------------
TOTAL MUNICIPAL BONDS
(cost $1,621,870,554).......................................................... $1,748,304,025
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--------------
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SHORT-TERM MUNICIPAL INVESTMENTS--2.7%
CALIFORNIA:
California Health Facilities Financing Authority, Revenue, VRDN
(Sutter Health) 1.80% (e)...................................................... $ 1,000,000 $ 1,000,000
California Pollution Control Financing Authority, PCR, VRDN
(Wadham Energy Project) 2% (LOC; Banque Paribas) (c,e)......................... 1,500,000 1,500,000
Los Angeles, TRAN 3%, 6/30/1994.................................................. 29,300,000 29,387,314
San Francisco City and County Redevelopment Agency, Refunding, VRDN
(South Harbor Project) 2.175% (LOC; Mitsubishi Bank) (c,e)..................... 8,000,000 8,000,000
Southern California Public Power Authority, Transmission Project Revenue,
Refunding, VRDN (Southern Transmission) 2.20% (LOC; Swiss Bank Corporation)
(c,e)........................................................................ 8,400,000 8,400,000
--------------
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $48,250,464)............................................................. $ 48,287,314
--------------
--------------
TOTAL INVESTMENTS--100.0%
(cost $1,670,121,018).......................................................... $1,796,591,339
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DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
- --------------------------------------------------------------------------------
SUMMARY OF ABBREVIATIONS
<TABLE>
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation LOC Letter of Credit
BIGI Bond Investors Guaranty Insurance LR Lease Revenue
COP Certificate of Participation MBIA Municipal Bond Insurance Association
FGIC Financial Guaranty Insurance Corporation PCR Pollution Control Revenue
FNMA Federal National Mortgage Association RRR Resources Recovery Revenue
FSA Financial Security Assurance SFMR Single Family Mortgage Revenue
GNMA Government National Mortgage Association SWDR Solid Waste Disposal Revenue
HR Hospital Revenue TRAN Tax and Revenue Anticipation Notes
IDR Industrial Development Revenue VRDN Variable Rate Demand Notes
</TABLE>
- --------------------------------------------------------------------------------
SUMMARY OF COMBINED RATINGS (UNAUDITED)
<TABLE>
<CAPTION>
PERCENTAGE OF
FITCH (f) OR MOODY'S OR STANDARD & POOR'S VALUE
- -------------- ------------------ ------------------ -------------
<S> <C> <C> <C> <C> <C>
AAA Aaa AAA 44.3%
AA Aa AA 22.3
A A A 16.1
BBB Baa BBB 1.1
F1 MIG1 SP1 2.1
F1 P1 A1 .6
Not Rated (g) Not Rated (g) Not Rated (g) 13.5
--------
100.0%
--------
--------
</TABLE>
- --------------------------------------------------------------------------------
NOTES TO STATEMENT OF INVESTMENTS:
(a) Inverse floater security - the interest rate is subject to change
periodically.
(b) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At November 30,
1993, these securities amounted to $14,962,500 or .8% of net assets.
(c) Secured by letters of credit.
(d) Non-accrual status.
(e) Securities payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market interest rates.
(f) Fitch currently provides creditworthiness information for a limited amount
of investments.
(g) Securities which, while not rated by Fitch, Moody's or Standard & Poor's
have been determined by the Fund's Board of Directors to be of comparable
quality to those rated securities in which the Fund may invest.
(h) At November 30, 1993 the Fund had $464,369,054 (25.3% of net assets)
invested in securities whose payment of principal and interest is dependent
upon revenues generated from electric utility projects.
See Independent accountants' review report and notes to financial statements.
<TABLE>
<PAGE>
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DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES NOVEMBER 30, 1993 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $1,670,121,018)--see statement............................................... $1,796,591,339
Cash................................................................................. 13,999,759
Interest receivable.................................................................. 34,286,255
Receivable for Common Stock subscribed............................................... 29,942
Prepaid expenses..................................................................... 100,409
--------------
1,845,007,704
LIABILITIES:
Due to The Dreyfus Corporation....................................................... $ 905,947
Payable for investment securities purchased.......................................... 10,951,695
Payable for Common Stock redeemed.................................................... 1,111,536
Accrued expenses..................................................................... 180,914 13,150,092
----------- --------------
NET ASSETS............................................................................. $1,831,857,612
--------------
--------------
REPRESENTED BY:
Paid-in capital...................................................................... $1,684,529,827
Accumulated undistributed net realized gain on investments........................... 20,857,464
Accumulated net unrealized appreciation on investments--Note 3....................... 126,470,321
--------------
NET ASSETS at value applicable to 118,023,276 outstanding shares of
Common Stock, equivalent to $15.52 per share (300 million shares of
$.01 par value shares authorized).................................................... $1,831,857,612
--------------
--------------
</TABLE>
<TABLE>
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS SIX MONTHS ENDED
NOVEMBER 30, 1993 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME...................................................................... $ 57,484,671
EXPENSES:
Management fee--Note 2(a).......................................................... $ 5,584,064
Shareholder servicing costs--Note 2(b)............................................. 652,478
Professional fees.................................................................. 77,031
Custodian fees..................................................................... 62,375
Prospectus and shareholders' reports............................................... 31,010
Directors' fees and expenses--Note 2(c)............................................ 15,328
Registration fees.................................................................. 8,087
Miscellaneous...................................................................... 30,614
-----------
TOTAL EXPENSES................................................................. 6,460,987
--------------
INVESTMENT INCOME--NET......................................................... 51,023,684
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments--Note 3............................................. $10,843,566
Net unrealized appreciation on investments........................................... 11,828,785
-----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................................ 22,672,351
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................................... $ 73,696,035
--------------
------ ------ ------ ------ ------ -------
------ ------ ------ ------ ------ -------
- --------------------------------------
TOTAL INVESTMENT RETURN 10.99% 6.10% 8.75% 7.90% 10.89% 8.04%(1)
- --------------------------------------
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net
assets............................ .70% .69% .69% .68% .69% .69%(1)
Ratio of net investment income to
average net assets................ 7.32% 7.10% 6.82% 6.32% 5.88% 5.48%(1)
Portfolio Turnover Rate............. 40.47% 35.44% 55.82% 45.58% 41.40% 11.45%(2)
Net Assets, end of period (000's
Omitted).......................... $1,385,455 $1,497,552 $1,629,837 $1,751,880 $1,834,956 $1,831,858
<FN>
- ---------------
(1) Annualized.
(2) Not annualized.
</TABLE>
See independent accountants' review report and notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act") as
a non-diversified open-end management investment company. Dreyfus Service
Corporation ("Distributor") acts as the exclusive distributor of the Fund's
shares, which are sold to the public without a sales charge. The Distributor is
a wholly-owned subsidiary of The Dreyfus Corporation ("Manager").
(A) PORTFOLIO VALUATION: The Fund's investments are valued each business
day by an independent pricing service ("Service") approved by the Board of
Directors. Investments for which quoted bid prices in the judgment of the
Service are readily available and are representative of the bid side of the
market are valued at the mean between the quoted bid prices (as obtained by the
Service from dealers in such securities) and asked prices (as calculated by the
Service based upon its evaluation of the market for such securities). Other
investments (which constitute a majority of the portfolio securities) are
carried at fair value as determined by the Service, based on methods which
include consideration of: yields or prices of municipal securities of comparable
quality, coupon, maturity and type; indications as to values from dealers; and
general market conditions.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions
are recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Interest income,
adjusted for amortization of premiums and, when appropriate, discounts on
investments, is earned from settlement date and recognized on the accrual basis.
Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date.
The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations held
by the Fund.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to comply
with the distribution requirements of the Internal Revenue Code. To the extent
that net realized capital gain can be offset by capital loss carryovers, if any,
it is the policy of the Fund not to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the provisions available to certain investment
companies, as defined in applicable sections of the Internal Revenue Code, and
to make distributions of income and net realized capital gain sufficient to
relieve it from all, or substantially all, Federal income taxes.
NOTE 2--MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager, the
management fee is computed at the annual rate of .60 of 1% of the average daily
value of the Fund's net assets and is payable monthly. The Agreement provides
for an expense reimbursement from the Manager should the Fund's aggregate
expenses, exclusive of taxes, interest on borrowings, brokerage commissions and
extraordinary expenses, exceed 1-1/2% of the average value of the Fund's net
assets for any full fiscal year. There was no expense reimbursement for the six
months ended November 30, 1993.
<PAGE>
- --------------------------------------------------------------------------------
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
the Distributor an amount not to exceed an annual rate of .25 of 1% of the value
of the Fund's average daily net assets for servicing shareholder accounts. The
services provided may include personal services relating to shareholder
accounts, such as answering shareholder inquiries regarding the Fund and
providing reports and other information, and services related to the maintenance
of shareholder accounts. During the six months ended November 30, 1993, the Fund
was charged an aggregate of $229,570 pursuant to the Shareholder Services Plan.
(C) Certain officers and directors of the Fund are "affiliated persons," as
defined in the Act, of the Manager and/or the Distributor. Each director who is
not an "affiliated person" receives an annual fee of $4,500 and an attendance
fee of $500 per meeting.
(D) On December 5, 1993, the Manager entered into an Agreement and Plan of
Merger providing for the merger of the Manager with a subsidiary of Mellon Bank
Corporation ("Mellon").
Upon closing of the merger, it is planned that the Manager will retain its
New York headquarters and will be a separate subsidiary within the Mellon
organization. It is expected that the Manager's management team and mutual fund
managers will remain in place, and the Dreyfus mutual funds will be operated in
the same manner as they are currently.
Following the merger, the Manager will be either a direct or indirect
subsidiary of Mellon, whose principal banking subsidiary is Mellon Bank, N.A.
Closing of this merger is subject to a number of contingencies, including the
receipt of certain regulatory approvals and the approvals of the stockholders of
the Manager and of Mellon. The merger is expected to occur in mid-1994, but
could occur significantly later.
Because the merger will constitute an "assignment" of the Fund's Management
Agreement with the Manager under the Investment Company Act of 1940, and thus a
termination of such Agreement, the Manager will seek prior approval from the
Fund's Board and shareholders.
NOTE 3--SECURITIES TRANSACTIONS:
Purchases and sales of securities amounted to $394,452,773 and
$434,281,717, respectively, for the six months ended November 30, 1993, and
consisted entirely of municipal bonds and short-term municipal investments.
At November 30, 1993, accumulated net unrealized appreciation on
investments was $126,470,321, consisting of $139,984,285 gross unrealized
appreciation and $13,513,964 gross unrealized depreciation.
At November 30, 1993, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting purposes
(see the Statement of Investments).
<PAGE>
- --------------------------------------------------------------------------------
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
- --------------------------------------------------------------------------------
REVIEW REPORT OF ERNST & YOUNG, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS CALIFORNIA TAX EXEMPT BOND FUND, INC.
We have reviewed the accompanying statement of assets and liabilities of
Dreyfus California Tax Exempt Bond Fund, Inc., including the statement of
investments, as of November 30, 1993, and the related statements of operations
and changes in net assets and financial highlights for the six month period
ended November 30, 1993. These financial statements and financial highlights are
the responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures to
financial data, and making inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope than an audit conducted in
accordance with generally accepted auditing standards, which will be performed
for the full year with the objective of expressing an opinion regarding the
financial statements and financial highlights taken as a whole. Accordingly, we
do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted auditing
standards, the statement of changes in net assets for the year ended May 31,
1993 and financial highlights for each of the five years in the period ended May
31, 1993 and in our report dated July 9, 1993, we expressed an unqualified
opinion on such statement of changes in net assets and financial highlights.
ERNST & YOUNG
New York, New York
January 3, 1994
<PAGE>
[DREYFUS LION LOGO]
DREYFUS CALIFORNIA
TAX EXEMPT BOND FUND, INC.
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
DISTRIBUTOR
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
110 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained in the Prospectus,
which must precede or accompany this report.
<PAGE>
[DREYFUS LOGO]
California
Tax Exempt
Bond Fund, Inc.
Semi-Annual
Report
November 30, 1993
Printed in U.S.A. 928SA9311
